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As the CEO of a prominent real estate title insurance company, Thomas Grifferty has seen his share of impressive properties.

But when he first saw plans for the Edgemere waterfront condominium project in the Oakville Real Estate market, he was sold.

“It didn't take us long to make a decision to live here,” said Grifferty, the head of First Canadian Title, the largest title insurance company in Canada. “This is a really unique property by the lake.”

Entrepreneurs such as Grifferty are one reason why the Canadian luxury home market has seen a resurgence this year as it comes out of the 2009 recession, when credit markets froze.

A burgeoning Canadian millionaires club has caused demand to rebound for luxury goods ranging from Hermes handbags to real estate.

Luxury home sales rose in 12 major centres across Canada, according to a report released Wednesday by ReMax Ontario Atlantic Canada and ReMax Western Canada.

In Grifferty's Oakville real estate neighbourhood, sales of homes valued at $1.5 million and higher were up by 61 per cent in the first four months of the year, compared with 2010, according to ReMax.

The Oakville real estate markets large stately homes and proximity to the lake have been a big draw for Bay Street bankers and financial service workers.

The Toronto market, meanwhile, saw a more moderate but still respectable 9 per cent increase in the sales of luxury homes valued at $1.5 million or over. Ten of those properties were priced at $5 million or more.

But that doesn't compare with the Vancouver-area market, which saw homes valued at $2 million and more jump in sales by 118 per cent. Foreign investment, largely from Asia, is lifting the demand for high end housing.

(ReMax defines luxury by different price points across Canada. A “luxury” home starts at $500,000 in Regina and London, but rises to $2 million in Vancouver.)

“Serious equity gains, stock market recovery and improved economic performance have been behind the push for luxury housing product across the country,” said Michael Polzler, executive vice-president of ReMax Ontario Atlantic Canada.

“The impact of that wealth is being seen in the demand for all things luxury — from homes to cars, to collectibles and fine wines.”

According to a recent study by Deloitte Center For Financial Services, the number of millionaires in Canada will exceed 2.4 million by 2020, up from the current crop of 1.7 million.

American Express is also reporting that the luxury market in Canada grew 14 per cent in 2010 and another 11 per cent in the first quarter of this year based on card transactions.

Luxury real estate has continued to grow over the past decade. The only stumble was in 2009 during the recession, when sales in the GTA fell by 49 per cent over 2008. That was when major New York investment bank Lehman Bros. failed, creating a global panic.

But so far the economy — particularly in Canada — has recovered better than some expected, with the country leading the G7 out of the recession in economic growth.

That growth has translated into jobs, particularly in the financial services industry.

Grifferty, for example, has expanded his company to more than 600 employees across Canada during the last decade as the housing market has continued to exceed expectations.

He already had a large home in the Oakville real estate market, but with two children in their last year at university and two other children who were married, he figured it was time to downsize.

But not by much. His new condo is still a respectable 3,850 square feet.

Buying a luxury home is a leap of faith because it is a discretionary purchase. But Grifferty said he didn't hesitate to buy, even though the economy may still be in a fragile recovery.

“I think the overall economic conditions are a concern. But on the flip side, where do you put your money? The stock market is a little iffy, so having some money tied up in real estate might not be a bad thing. I would be more concerned if this was just a mainstream condominium project, but this is so unique, I don't think the value will be severely impacted.”

Edgemere is a historic estate once owned by Mattamy Homes founder Peter Gilgan before it was sold to developer Marc Hewitt.

Hewitt started selling the condo units more than two years ago, but the global financial crisis in 2008 froze luxury spending dramatically.

Grifferty declined to say how much he paid, but a similarly sized property in the complex is going for $3.2 million, or about $800 a square foot.

While downtown Toronto condos such as the Four Seasons have sold for well north of 1,000 per square foot, Grifferty figures the price he paid is something of a bargain. The highest priced property sold in the Oakville real estate market so far this year was $8 million. The most expensive property listed for sale is $22 million.

This $8 million home in Oakville is on the market – supplied photo

Source – Tony Wong, Toronto Star – moneyville.ca – article modified

19/05/2011 – This Article was posted by Ryan Crane, an Oakville Real Estate agent that works throughout the GTA and specializes in the Burlington, Milton, Mississauga, and Oakville Real Estate markets. You can find him at www.oakvillerealestate4sale.ca

Oakville Real Estate Agents website provides complete access to all of the Oakville MLS Listings for all Oakville Homes for Sale plus all Oakville Sold Prices.

Tags: Oakville Homes, Oakville Real Estate, Oakville Real Estate Agent, Real Estate Outlook
 

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